The information shown in the table was taken from the work
sheet of Graff Home Repairs. During the period, the owner invested an
additional $9,000 in the business. What was the balance of the capital
account at the beginning of the period?
Total
Assets Total
Liabilities Capital Withdrawals Revenue Expenses
$34,819 $2,499 $32,000 $1,000 $3,230 $1,910
To find the balance of the capital account at the beginning of the period, we need to subtract the investments made during the period from the ending capital balance.
Ending capital balance = Beginning capital balance + Investments - Withdrawals + Revenue - Expenses
$32,000 = Beginning capital balance + $9,000 - $1,000 + $3,230 - $1,910
Rearranging the equation to solve for the beginning capital balance:
Beginning capital balance = $32,000 - $9,000 + $1,000 - $3,230 + $1,910
Beginning capital balance = $22,780